Economics (AS & A Level) · Oct / Nov 2021 · Paper 31 · Question 9
9708Growth and survival of firms
A multinational firm seeks to minimise costs and maximise profits. What would least assist the multinational to achieve these objectives?
- Aachieving a near monopoly status to control outputs and prices
- Blocating the firm's home base in a country with a low level of corporation tax
- Coperating as a member of a cartel with production quotas
- Downing subsidiary firms in different countries to achieve economies of scale
As printed in the paper
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Correct answer: C. operating as a member of a cartel with production quotas
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